New Delhi: The shares of the country’s oldest and largest life insurance firm, Life Insurance Corporation of India (LIC), debuted the stock exchanges on a weak note on Tuesday with the shares listing over 8 per cent lower from the issue price.
The LIC scrip opened at Rs 867.20 on the BSE, down 8.62 per cent from the issue price of Rs 949. While, on the National Stock Exchange (NSE), it opened 8.11 per cent lower at Rs 872.00.
Life Insurance Corporation of India made its stock market debut on Today, where its shares got listed below their issue prices.
In the grey market on Monday, LIC shares were quoted at mild discounts. In the intra-day it was also quoted for at par listing. This means the share price of LIC is likely to be listed at the stock exchanges around the issue price of Rs 949 or below that.
In the grey market, LIC shares were quoted at a discount of Rs 15 to 20 per share. The recent volatility has led to a sharp drop in the grey market premium of LIC shares.
Grey Market is an unofficial platform, which tracks the expected listing price of the company. The trading in the grey market starts after the price band or IPO opening date is announced and goes on till the listing of shares on the stock exchanges.
The government raised Rs 21,000 crore by liquidating 3.5 percent of its stake in the biggest initial public offer (IPO) in the history of the Indian primary markets so far. The mega IPO which opened for subscription on May 4 and closed on May 9 was subscribed 2.95 times with bids worth Rs 45,000 crore received across investor categories. The shares were allotted to the successful shareholders on May 12 at the upper end of the Rs 902-to-Rs 949 price band.
LIC was formed by merging and nationalising 245 private life insurance companies on September 1, 1956, with an initial capital of Rs 5 crore. Its product portfolio comprises 32 individual products (16 participating products and 16 non-participating products) and seven individual optional rider benefits.
The insurer’s group product portfolio comprises 11 group products. As on December 2021, LIC had a market share of 61.6 per cent in terms of gross written premium, 61.4 per cent in terms of new business premium, 71.8 per cent in terms of the number of individual policies issued, and 88.8 per cent in terms of the number of group policies issued.